A popular crypto analyst says that regulation will deter institutional investors from entering one sector of the altcoin space.
In a new interview, the host of financial education YouTube channel InvestAnswers unveils why he is skeptical about investing in privacy coins, which are cryptocurrencies that obscure transaction information, allowing users to maintain anonymity and hide their activities.
[adinserter block="1"]“For privacy coins to succeed, they need to raise institutional money. I know the people out there in the audience believe that things like VCs (venture capitalists) are bad, but if VCs are bad, there would never be anything like Microsoft or Hewlett-Packard or Google or Facebook or Tesla or SpaceX.
These are the people behind all these successful companies, and the problem with secret coins is they will always be viewed under a very high regulatory scrutiny, and therefore, institutional investors will not invest…
I do believe there’s a need, but as regulation comes, these are the first things that are going to get quashed. There’s no price upside as well and looking at the tokenomics as well of SCRT token, I wouldn’t touch it: no max supply, very little distributing. It doesn’t look like a good thing.”
As for Bitcoin, the crypto strategist says BTC is still considered a risk-on asset.
“It’s tied to like a tech stock, and we are seeing that exact behavior. Like with the Bitcoin conference going on right now, I think people are expecting huge breakthrough news and if that doesn’t happen, there’ll be a lot of disappointment. I also see a lot of money flow into different assets. Bitcoin isn’t the big black hole. It is the hardest, most pristine asset on Earth, but there’s so many distractions now to place your money.”
After going above $47,000 this month, BTC is now exchanging hands for $42,246.31.
I
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/kkssr/Sensvector
